Frontier Insurance Group, Inc. Announces Reduction in Staff

Business Wire, March 22, 2001

Business Editors/Insurance Writers

ROCK HILL, N.Y.--(BUSINESS WIRE)--March 22, 2001

Frontier Insurance Group, Inc. (Frontier) (OTCBB:FTER) announced today a 67 person staff reduction at its Rock Hill, New York office. This reduction in work force follows the March 13 announcement that Frontier Insurance Company, Frontier's primary operating subsidiary, would voluntarily withdraw from writing new and renewal insurance business.

Harry W. Rhulen, President and Chief Executive Officer, stated, "While implementing a reduction in workforce was difficult, it was necessary for our infrastructure and staffing levels to be adjusted during the period Frontier Insurance Company is not assuming risk. Only certain functions and positions are required to support our current business operations, and staffing levels will continue to be evaluated."

Special Note Regarding Forward-Looking Statements

This release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934 (the "Exchange Act") which are not historical facts and involve risks and uncertainties that could cause actual results to differ materially from those expected and projected. The words "believes," "anticipates," "expects" and similar expressions are intended to identify forward-looking statements which include, but are not limited to statements concerning continued monitoring of staffing levels. Such risks and uncertainties include, but are not limited to, the following: (i) general economic conditions; (ii) conditions specific to the property and casualty insurance industry, including its cyclical nature, regulatory changes, rating agency policies and practices, competitive factors and claims development and the impact thereof on loss reserves, the Company's reserving policies and the adequacy of the Company's reinsurance programs; (iii) Frontier's ability to continue its insurance business; (iv) the future decisions of the State of New York Insurance Department; (v) the sufficiency of Frontier's reserves or that Frontier's reinsurer will meet obligations of the reinsurance agreement or will agree with Frontier on items to be recovered; and (vi) the ability to identify strategic options that would enable Frontier to continue its insurance business. Accordingly, there can be no assurance that the actual results will conform to the forward-looking statements in this release.